Taxpayers spent $135M to keep Cincinnati Open tournament. Will it be worth it?

MASON, Ohio – Thousands will flock to the Cincinnati Open tennis tournament next week, which Mason was able to hold on to thanks to a partially government-funded, $260 million campus renovation set to be completed next year.

The total cost to the taxpayers? $135 million, according to Enquirer calculations based on city, county and state records.

As part of the deal, Greater Cincinnati won out against Charlotte in keeping the 125-year-old tournament, but will also gain a publicly owned, year-round sports and entertainment complex projected to bring a $150 million annual impact to the region.

Mason's city council agreed to spend $15 million to purchase the tournament site from its current owner, Tennis for Charity. The city, which already owns the adjacent golf course, was able to negotiate with the nonprofit based on a shared interest in keeping the tournament in Mason, assistant city manager Jennifer Heft said. The sale has not been finalized, but city officials are hoping it will be completed before the Cincinnati Open starts on Aug. 11.

The Warren County Port Authority will own the tennis complex, which sits across Interstate 71 from two other Mason tourism destinations, Kings Island and Great Wolf Lodge Water Park. Beemok will manage the venue.

The deal transforms what Greater Cincinnati residents will get out of the campus. Previously open for events just a few weeks each year, the Lindner Family Tennis Center will become a year-round sports and entertainment destination, with an indoor facility, after the Cincinnati Open expands to two weeks in 2025.

Tennis, pickleball and padel courts will be open to the public for membership-based adult and youth programs. Beemok also plans to book concerts, events and other sports tournaments.

"It's not just gonna be used for two weeks," said Warren County Commissioner Dave Young, who is running unopposed for reelection this year. "It's a publicly owned asset that we want pushing 100 different events."

'It's about the money': A breakdown of public investments

Last summer, Young heard from a lobbyist friend working for Beemok that negotiations to move the then-Western & Southern tennis tournament to Charlotte were going well.

North Carolina taxpayers were prepared to contribute $130 million to a proposed $400 million, 40-court tennis complex that would become the tournament's new Charlotte home. Beemok Capital, a company owned by South Carolina billionaire Ben Navarro and the tournament's new-ish owner, was all but ready to move on the deal.

"People in the know were saying, 'It's gone. You've gotta do something,'" Young recalled.

Not wanting to lose Cincinnati's historic tournament "because of money," Young, a Republican, got fellow conservative leaders in Warren County, Mason and Ohio on board to save the event.

Ohio state Rep. Adam Mathews, R-Lebanon, who is up for reelection in November, successfully pushed for two sources of state funding. The three government bodies would contribute $130 million to a $260 million revamp of the Lindner Family Tennis Center.

"You've got to think outside the box," Young recalled FC Cincinnati co-CEO Jeff Berding telling him. "Just because Beemok is asking for something, doesn't mean that's necessarily what they want."

The Western & Southern Open, now Cincinnati Open, has been played in Mason since 1979 and developed a well-established fan base with 1,500 stadium volunteers. Ohio's offer would save Beemok money and keep a global sport in Warren County, Young said.

"I knew they were interested in staying. I knew they were looking for a really good deal for both parties," Young said. "It's about the money. It's about the ease of operation."

Almost one year later, taxpayers will pay slightly less than anticipated – $120 million – on improvements to the complex. Mason will spend an additional $15 million to buy the land, bringing the total taxpayer cost to $135 million.

Here's how much each government will pay:

• $50 million from Ohio ($22.5 million from House Bill 33, $27.5 million from House Bill 2).

• $45 million from Warren County ($3 million from COVID-19 recovery funds, $42 million from county's general fund and surpluses).

• $25 million from Mason, plus $15 million to buy the land (Most of the money came from city reserves).

No local taxes were increased to afford the deal.

Warren County expects to see a return on their investment in 10 years, Young said. Beemok committed to keeping the tournament in Mason for 25 years.

If the renovation comes under budget, leftover money will go toward a maintenance fund. But any other maintenance costs will be covered by Beemok, Warren County administrator Martin Russell said.

'We want those folks to spend': Tourism's role in Warren County economy

Tourism is Warren County's No. 1 industry, anchored by events like the Cincinnati Open and destinations like Kings Island. County leaders rely on sales tax dollars, nearly half of which are paid by non-residents, to fulfill county needs.

"We want those folks to spend," Russell said. "We want our tourism industry to continue for the next 25 years to be the most robust as possible."

Russell didn't know how much sales tax is generated solely by the tournament because state reports are broken down by month, not by week or event. According to the county's sales tax analysis, sales tax generated $2.4 million in August 2023, when the last Cincinnati Open was held. By comparison, the county generated the most sales tax, $2.5 million, in December and the least, $1.8 million, in February.

A 2023 study by the University of Cincinnati Economics Center projected non-local attendees will directly spend around $56 million on hotels, food, retail and more when the tournament is expanded to two weeks. That study found the extended tournament could have a $150 million total impact on the area.

Property values and taxes will rise in Warren County next year, as they did in Butler, Clermont and Hamilton counties this year. The county will lose nearly $400,000 annually in property taxes once the Lindner Family Tennis Center is government-owned.

However, Young said the sales tax generated by the complex will allow the county to keep property taxes low and possibly offer the opportunity for another property tax holiday, like they did in 2022.

This article originally appeared on Cincinnati Enquirer: Cincinnati Open revamp has begun. Here's its cost to taxpayers